Sector-Based Opportunities in 2021

Despite the pandemic being far from over, the Indian economy is predicted to bounce back from a downturn in 2021. Businesses are expected to generate turnovers at the pre-COVID-19 levels. While coronavirus cases are expected to decline shortly, the vaccination drive around the country has developed a sense of optimism among the general public, creating new and positive prospects for the Indian economy for the financial year 2021-22. Credit rating agencies such as Standard & Poor (S&P) and Fitch have pegged India's GDP growth rate to recover at 10% and 11%, respectively.

India's path to economic reforms has become one of the fastest-growing economies in the world. One of its biggest assets is its young and ever-booming population, which can help increase the GDP growth by a multifold factor and factor it in the league of developed and industrialised nations in the coming decade. However, to achieve the same, jobs need to be created, and that is only possible if there is an increase in the skilled workforce and GDP growth is maintained.

Job Creation in India

With low corporate tax rates, affordable cost of labour, and incentives for setting up small business opportunities in the manufacturing sector, India has slowly emerged as a hub for global manufacturing. In recent times, the Indian government has also launched various initiatives to ensure the ease of doing business in India, such as 'Atmanirbhar Bharat, 'Self-Reliant India', 'Vocal for Local', and 'Make in India'. Moreover, in November 2020, the central government approved the extension for its Production-Linked Initiative (PLI) Scheme across ten flagship sectors, with incentives totalling approximately Rs. 1.46 billion. Previously, the Scheme catered to only three sectors: mobile and electrical component production, manufacturing of medical tools equipment, and the pharmaceutical industry.

In the year 2019, the government also reduced the corporate tax rates for new businesses in the manufacturing sector from 25% to 15%, providing further incentive for new business opportunities and small business opportunities. Last but not least, India has permitted 100% FDI in many sectors under the automatic route, making it easier and convenient for foreign investors to set up their firms.

Fastest growing sectors in India in terms of job opportunities

Let us take a look at some of the fastest-growing sectors in India in terms of job and business opportunities for the year 2021.

1. Information Technology (IT)- The information technology industry, or the IT industry, can be considered the pillar of modern India. A sector whose contribution was less than 5% a decade ago now constitutes almost twice as much to the economy. Despite the economic downturn owing to the COVID-19 pandemic, the IT sector has consistently brokered deals with leading multinational corporations. It has generated more than four million jobs, as well as ten million jobs indirectly. In 2019, the four major IT firms in India, Infosys, Wipro, TCS, and HCL Tech, witnessed a cumulative growth of 1.02 million in terms of the number of people employed. Hence, the IT sector can be called the primary driver of economic growth in India in the year 2020, although the same trend is expected to continue in the near future.

2. E-Commerce- The Indian e-commerce industry has been growing by leaps and bounds, as tech-savvy consumers now prefer to shop online compared to brick and mortar stores. With the pandemic, the advent of digital retail has only grown, and the sector is predicted to create at least three lakh jobs, while the average daily e-commerce deliveries are expected to grow 1.8 times the number of shipments made in 2020. In fact, online retail giants like Amazon and Flipkart sold goods worth $4.1 billion in the first week of the festive season in the year 2020, a jump from $2.7 billion generated in the year 2019. E-commerce is slowly becoming one of India's best small business opportunities, with several small ventures and startups taking their presence online.

3. Healthcare- Although the healthcare industry has profited due to the drastic jump in demand for medical supplies and vaccines due to the novel coronavirus, the sector has also managed to generate over 40 million new employment opportunities in 2020. Moreover, with low healthcare costs, India is slowly becoming a hub for medical tourism. Due to a rise in disposable income, there is a strong market potential for the medical sector to further expand its operations and create new business opportunities. Consequently, there are strong employment predictions in the healthcare industry regarding human resources (HR), sales, marketing, IT, and operations.

4. Infrastructure- While India's infrastructure industry is highly fragmented and largely unaccounted for, owing to the presence of the unorganized sector, its growth has been exponential in the last ten years. Be it roads, railways, highways, aviation, shipping, or energy, the Indian infrastructure sector appears to be making rapid progress, leading to high employment generation. Experts have forecasted that India's infrastructure industry will have an average growth ranging between 7% and 10% in the coming decade.

5. Telecommunications- With the increased demand for remote networking and communication due to the lockdown, the telecom sector is now offering a range of job opportunities to people in India. At present, India is the second-largest telecommunications market with a subscriber base of 1.16 billion, and its telephone subscriber base rose to 1177.97 million in 2020, along with an increase in teledensity base by 87.37%. Additionally, growth in the number of mobile phone users and reduction in data costs are expected to add 500 million more telecom users in India, creating more employment and business opportunities in the next five years.

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FAQs

Q. What kind of jobs are available in the e-commerce sector?

Ans. Typically, the job vacancies in the e-commerce sector will include supply chain-related employment opportunities such as delivery personnel, after-sale customer service, and warehouse staff.

Q. Does the healthcare sector only have jobs related to the medical profession?

Ans. No, While the healthcare sector is primarily concerned with diagnosing and treating illnesses, the industry requires people for various other purposes, such as sales, marketing, logistics, finance, and operations.

Q. Are these the only sectors that are hiring in India currently?

Ans. While other sectors are also generating jobs, the five sectors discussed here are the ones that have experienced massive growth in 2020, despite the pandemic having derailed economic growth.